Feronia Inc. has announced it has completed the first tranche of a US$25 million private placement led by CDC Group plc, (CDC) – the UK government’s Development Finance Institution. Feronia Inc. is a large-scale commercial farmland and plantation operator in the Democratic Republic of Congo, focusing on the edible oil industry. The CDC has acquired 151,496,000 common shares in the company for a price of $14.5 million. Also in connection with the deal the African Agriculture Fund (AAF) – the $243 million African private equity fund managed by Phatisa, and Feronia’s largest shareholder, acquired 78,360,000 common shares for $7.5 million. The funds will be used to finance the company’s existing and future oil palm replanting program. Multiple other qualified investors have also subscribed for an aggregate purchase price of $2.85 million of which $1.38 million was completed in connection with the first tranche. Feronia and the CDC have also entered into a convertible loan agreement through which the CDC will make available an unsecured non-revolving term loan up to a maximum of $3.6 million at an interest rate of 12% for five years to support the implementation of an Environmental and Social Action Plan.
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